Pinduoduo is Getting Bullish Ahead of Chinese Spring Festival: Reaching Highest at $30.88
Pinduoduo Inc (NASDAQ:PDD) share hit the highest point on Friday, reached the highest in history at USD 30.88.
Feb 2, 2019, /EqualOcean/ - Pinduoduo Inc (NASDAQ:PDD) share hit the highest point on Friday. The company traded as high as USD 30.88 and last traded at USD 29.85, with a total volume of 100682 shares traded on that day. At the time this article is being written, the share price of the company was still quite at 29.01.
Pinduoduo's share climbed up rapidly after Jan 1st, 2019 to USD 24.00, and then remained well above this price ever since then. This was possibly due to the vehement passion for shopping on the special days, New Year in this case; and later, the most important holiday in China arriving in early February this year - Chinese Spring Festival. The grand celebrations with family members and best friends, the ritual of purchasing new clothes and tons of snacks, meat, vegetables, and expensive alcohols, as well as the gift giving and red envelope preparing (发红包) customs can eat out quite a lot of money from Chinese people's wallets.
The preparation for the holiday can start as early as January, and the celebration spreads out to late February every year. Since in Chinese tradition, "Shi Wu" (十五), the 15th day in a new year on Chinese lunar calendar, is the second most important festival after Chinese Spring Festival, called Lantern Festival. The period lasts for almost two months every year lends the best opportunities for Chinese E-commerce brands to earn a fortune. The Chinese E-commerce enterprise Pinduoduo probably found the good timing.
Started in 2014, the company completed 6 rounds of financing before went to IPO in New York in July last year. Chinese giant Tencent group (腾讯) began to support the company since 2016. The share price was set at USD 19 per American depositary share (ADS) initially, the company's share price soared to 44% higher at the end of the day. The company was traumatized by the accusation of selling counterfeits before its IPO and after. China's State Administration for Market Regulation even announced on its website suggesting it is investigating the claims in last August, which caused the company's stock price to plunge. Not many days ago in late January, the company has reported a theft of tens of millions of Chinese yuan worth of discount voucher over a night. Even though the company had encountered numerous obstacles, it remained strong and continued with its bullish performance in the stock market.
Pinduoduo is obtaining a large army of attention from analysts recently.Pinduoduo+Inc.+%28PDD%29+at+Outperform/14587499.html" target="_blank"> Credit Suisse initiates coverage on Pinduoduo with an Outperform rating in September last year. In mid-January, Morgan Stanley began coverage on PDD and issued an "overweight" rating for the company ahead of its lock-up period coming to an end. Also, an analyst from the firm estimates that Pinduoduo's share will rise up to USD 29.00, which turned out to be true. HSBC started coverage on Pinduoduo's share in the morning of Feb 1st, 2019, with a hold rating on the stock.
It's undeniable even for a few Chinese media castigating the company that the enterprise indeed registered a success, thanks to their magical scheme "Social+Online Shopping" which lures an army of customers without costing a penny, and the noticeable lower price compared to its competitors.